The scammers did their thing.

Despite their practical advantages, automated teller machines (ATMs) are not immune to fraud, particularly as “skimming devices” (cloning devices) have become common in recent years, affecting both customers and banks. Focuses on the dangers of this type of financial fraud and the complexity of combating this crime.

Discovery Stealing equipment Last week’s attacks on several ATMs in the capital have once again raised questions about its dangerousness and the complexity of combating this type of financial fraud. But what is it and how does it work? Skim Card cloning is a technique whereby a device is illegally installed on or inside an ATM to retrieve bank card data and record the holder’s personal identification number (PIN). Fraudsters then use this data to create counterfeit cards and make unauthorized purchases or steal money from the victim’s bank account. The FBI stresses that this danger is not limited to ATMs, but also threatens points of sale or gas stations, and the agency estimates that this fraud costs consumers more than $1 billion per year.

“An ATM card consists of a chip and a magnetic stripe on the back, which is made of iron particles formed into a specific magnetic geometry. The latter contains the encoded data. When the card is inserted into the receiver of the electronic teller machine, it decrypts the data stored on the chip and the magnetic stripe on the back and connects them to the bank’s servers. Subsequently, the PIN code authorizes you to access your account. Orders such as withdrawing money or reading bank statements are then executed and processed””, explains a computer scientist working in the banking industry.

The modus operandi of the thugs

This type of fraud therefore requires the fraudster to have two tools: a card reader capable of decrypting the recorded data to access the bank’s server, and a device that captures the PIN when it is inserted, in order to gain authorized access to the victim’s account and conduct transactions. “The device can be a hidden camera that sticks to the surface of the ATM and records the code dialed, or it can be a keypad superimposed on the machine’s keyboard, powered by a battery and equipped with a memory card to record the inserted PIN code»explains our interlocutor. “In some cases, the scammers do not use any device to record the PIN, but instead stand behind the victim and peek over their shoulder as they enter their PIN.”he added.

But how do thieves use the collected information to withdraw cash at an ATM? “After the skimming device is removed, the criminals transfer all the collected data (both from the hidden camera/keypad and the card reader) to a computer to be synchronized and processed based on time. For example, if a victim inserts their card into a card reader (for skimming) at 10am, the data collected on the card’s magnetic stripe at that time will be compared with the PIN recorded on the hidden camera or covered keypad at the same time.”

Next comes the key element of the modus operandi: using a magnetic card writer to copy the bank card data onto a new blank card. As technology emerges, the device is increasingly easy to order from online sites at relatively low prices, ranging from $17 to $89 or even $195. “We must stress that magnetic card burners are not illegal tools in themselves, and therefore their sale is permitted. They are used to engrave genuine bank cards or loyalty and gift cards of branded stores. Their use depends on the individual, and the only purpose of using them by thieves is fraud.”, the computer scientist explained.

Ongoing Problems

In the U.S., states such as Alabama, California, Nevada and Florida have seen a sharp increase in fraud cases Stealing equipment Last year, the number of stolen bank cards increased by 96%. In 2013, several banks in Zambia were robbed of more than $4 million by sophisticated cyber criminals working in collusion with foreigners and Zambians. SkimTourists in Bali are also being urged to only use authorised ATMs to withdraw cash due to recent scams. Stealing equipment.

Morris was not spared. In July 2015, surveillance cameras at the Mauritius Commercial Bank (MCB) discovered Stealing equipmentThese fraud data detection devices were installed on two ATMs in Port Louis. As a precautionary measure, the bank decided to freeze 1,500 cards. The Bank of Mauritius and the police were notified and the customers were eventually able to receive new cards. Three suspects were arrested in the case.

That same year, as people were preparing for the Chinese New Year, the thugs decided to strike again. This time, the first to bear the brunt were customers of the State Bank of Mauritius (SBM), who used their cards to withdraw money from the ATM on Pope Hennessy Street. The skimming devices were discovered during a routine check on December 31. As a precautionary measure, SBM has frozen at least 141 bank cards and has initiated a replacement process to ensure the safety of its customers.

However, last week, two suspects were arrested by the police after a skimming device was found on an ATM in the capital. A video of the discovery was circulated on social networks. The Mauritius Bankers Association announced in a press release that a limited number of ATMs were affected by this issue. The cases were quickly discovered and handed over to the police. The cards that could have been affected have been deactivated and will be replaced.

Who is in danger?

this Skimmer One source noted that the techniques associated with this type of fraud can be difficult to detect as criminals try to fit their devices into card readers or match their appearance. “They don’t target any particular group. They work based on geographic location and a specific time of the month or year, such as the end of the month. The location could be related to ATMs in shopping malls, supermarkets or places with high foot traffic and activity during the day. The fraudulent withdrawals will occur a day or a few days later. These transactions are likely to occur in busy locations that reduce suspicion. Skimmers will not do this at ATMs equipped with video surveillance cameras and lights.”

To minimize the risk, it is recommended to use caution when using an ATM. Difficulty inserting the card into the card reader or the need to force the card in, scratches on the ATM keypad, or difficulty pressing numbers can indicate that the machine has been tampered with. When entering a PIN, it is recommended to cover the keypad with your other hand to prevent hidden cameras from capturing the activity.

However, one woman who has worked in the capital for more than 40 years believes that while the danger of such fraud concerns everyone, older people are particularly at risk. “During the years I’ve worked in Port Louis, there have been many times when I’ve had to rush to the ATM and use most of my lunch break to queue up for transactions, without the time or necessary observation to concentrate. There have also been several times when elderly people have come to me and asked me to help them withdraw money because they don’t know how to use technology. The danger is very real.”